A new £5 million co-working space for businesses, artists and academics has been opened in Birmingham.

Phase one of the STEAMhouse facility has been launched in Digbeth High Street by Birmingham City University and arts initiative Eastside Projects.

The hub is aimed at enabling small companies and artists to work together on new projects and business ideas.

STEAMhouse is based in the former South & City College building, which was also once a Volkswagen dealership, at 108 Digbeth High Street and has free facilities such as 3D printers, laser cutting machinery, virtual reality technology and printing studios.

It is set over eight different rooms and each one has its own specialist technology and dedicated technicians to support entrepreneurs.

The name STEAMhouse is a reference to mixing arts with the traditional STEM subjects - science, technology, engineering and maths.

Businesses have already put forward proposals for projects including one which is manufacturing recyclable plastics to be used by coffee shops and other outlets.

A second phase of the project has already received £14 million in funding from the Government in the 2016 Budget and will include the development of incubation and office spaces, teaching facilities, co-working spaces and artists' studios.

The location of this is yet to be decided.

Professor Julian Beer, deputy vice-chancellor of Birmingham City University (left), and West Midlands Mayor Andy Street officially open the new STEAMhouse facility in Digbeth (Image: Birmingham City University)

West Midlands Mayor Andy Street, who officially opened the building, said: "This region has long been renowned for its innovation, from being at the heart of the Industrial Revolution to becoming one of the country's brightest start-up hotspots.

"This state-of-the-art facility will provide a real home for innovation in the West Midlands and bring together businesses, artists and experts to create products and ventures that can support our economic growth.

"It is great news for people right across our region who have the opportunity to come and take advantage of the facilities and expertise that will be housed in STEAMhouse."

Professor Julian Beer, deputy vice-chancellor at Birmingham City University, added: "STEAMhouse is all about bringing together people from different backgrounds to maximise their opportunities for creativity and innovation.

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"We are delighted to formally open this facility which will help us rethink how business and the arts can work together, and the real impact that can have on economic growth in the West Midlands.

"We want to see as many people as possible take advantage of what is on offer here, as it undoubtedly has the potential to make a huge difference to the future prosperity of our region and its workforce."